Choosing your occupation is one of the toughest decisions you will ever make, and clearly one of the most important. That is true whether you're a young person looking for your first full-time job, or someone embarking on a second or third career later in life. For you to make the best choice you need to find out as much as you can about your possibilities from reliable and unbiased sources. You will want to know what kind of person is most likely to succeed, and you will surely want to find out how much money you can expect to make. It isn't always easy to get the kind of information you require. In real estate, for example, my research indicated that lack of objective information about the career field before they enter it is a major reason why people drop out of the profession. (See Appendix A.)

There is no question that residential real estate sales can be exciting and tremendously rewarding -- for the right person. My purpose in this chapter is to help you decide whether or not you are that person.

THE NATURE OF THE JOB

First, let's take a brief look at some of the basics. In legal terms an agent is someone empowered to transact business for another person. Real estate agents perform that function. I discuss the subject of agency as it relates to real estate in depth in Chapter 5. As a licensed real estate sales person (the most widely accepted official term) you will work for a real estate broker. A broker has spent a prescribed amount of time in the profession, has received additional training, and is subject to separate licensing procedures. Your broker will provide you with desk space and certain support items, and is obliged to supervise your professional real estate activities for as long as you are together. In return, you share your income with him or her. Some states are considering a single licensing system, in which the salesperson designation would be eliminated, everyone would be licensed as brokers, and supervisory relationships altered. Colorado is the only state that has so far adopted such a system. If you plan to become licensed there, you can get guidance by writing the Colorado Real Estate Commission at the address listed in Appendix B.

Almost all real estate agents are paid solely from commissions (brokerage fees paid to their supervising brokers and shared with the agents) that result either from property they sell or from the sale of their listings (contractual agreements with owners to market property) by other agents. This is true whether they are among the approximately 95 percent who are "independent contractors" or whether they are "employees." In real estate sales, employee is used to describe the nature of the supervisory relationship between broker and agent, and has specific legal and tax implications. Rarely are real estate salespeople who are employees paid a set salary. I describe these basics more fully in Chapter 3.

The point is that selling real estate is a job in which you survive and prosper by producing results. How you do that will be left largely to you. Whatever works, within the bounds of common sense, legality, and reason, will be acceptable. Within the profession, even among co-workers in the same office, there can be a remarkable diversity in the ways the role of real estate agent is interpreted. Many very successful agents rely heavily upon the traditional sales techniques, such as door-to-door solicitation and telephone canvassing. Others who are equally productive either do not employ any "standard" approaches or modify them greatly. One of the real attractions of the occupation is that you are able to pursue your career in a manner that is compatible with your own personality and values.

TRAITS AND SKILLS YOU'LL NEED

How well you do as a real estate agent will be determined by how well adapted you are to the demands of the profession. Here are some of the personality traits and job skills you will need in real estate. No one will possess all of them, nor is everyone equally thrilled with all parts of the job. Further, a real strength in one area can compensate for average abilities in another.

• You need to like the lifestyle. Most successful agents I know treat real estate more as a fascinating hobby than a job. They're never happier than when they are in the middle of putting a transaction together. They do not watch the clock and they are ready to spring into action when the bell rings (or the beeper beeps), whether it's day or night, weekday or weekend. The more astute discipline themselves to ensure they have a balance in their lives, but the fact remains that they love their work and typically immerse themselves in it. You don't have to be quite that passionate about the whole thing to succeed, but it will have to be more than "just a job" for you to put up with the demands upon your time. People expect you to respond at their convenience, not yours. For many, evenings and weekends are the only time they can look at property or talk to you about selling their home. If you are the type who dislikes a nine-to-five, Monday-through-Friday routine, then the real estate lifestyle will appeal to you.

• You need to be a self-starter. If the concept of individual accountability for achievement, judged almost exclusively by the number of business transactions you successfully consummate attracts you, you will find real estate an invigorating experience. You will either succeed or fail almost entirely on the basis of your own individual efforts. You need to understand that fact very clearly. No matter how effective the training program of the company with which you affiliate, and no matter how enlightened and supportive the broker with whom you work, you must have the desire and the ability to do it on your own. In my survey, lack of "self-starter" and "self-motivator" personality emerged as the most important reason people leave real estate prematurely (see Appendix A). A national franchise broker from California summed it up well in his survey reply: "Unless you are strong on self-discipline and do your own motivation, you should forget about real estate." Many people thrive in this atmosphere and would be uncomfortable in a more traditional environment. Others feel neglected, become lost and discouraged, and give up. You need to have a whole lot of the rugged individualist in you.

• You need to be a hard worker. It is not uncommon to encounter someone prospering in real estate who seems to lack all the prerequisites generally thought to be essential for success. Examples abound of people who violate every widely held sales precept and yet do quite well -- sometimes amazingly well. But big money without hard work? No. Read my words. Absolutely, positively not. Hard work is an indispensable, unconditional prerequisite. Formal research by the National Association of Realtors reveals what common sense would suggest: a direct, positive correlation exists in real estate sales between average hours worked per week and income. Those mavericks making the big bucks may be marching to a different drummer, but they're all working hard in their own way. A Wisconsin broker summed it up well in this survey comment: "Those who don't do well are those who just can't seem to get to work early and stay late, working effectively while there. Many new people think real estate is an easy job with easy money. Real estate success takes training, dedication, and an ability to work long hours, weekends, and during summer vacation periods." Just to put some numbers to it, NAR research reveals that the median hours worked per week by Realtor salespeople is 45, with 47 percent working more than 50. That's a pretty impressive work ethic.

My guess is that I am preaching to the choir with this sermon on hard work. If you're like many agents, your problem will be just the opposite. You will have to be dragged away from your desk at night and threatened with bodily harm by your broker or your mate to get you to take a vacation. You could even develop some very detrimental personal habits. For example, I frequently encounter a friend of mine, one of the most successful agents in our community, hastily wolfing down a fat-laden hot bratwurst at the stand in front of our local supermarket. He figures he can't afford to take the time for a sit-down lunch.

• You need to be a smart worker. Although hard work is essential, you get paid for the results you achieve, not the hours you put in. This means that you must spend your time doing those specific things that have the highest potential for paying off. It also means that you should organize your business affairs to be efficient and productive. (I deal with each aspect in depth in later chapters.) The ability to "work smart" has very little to do with native intelligence. Fortunately for most of us, you do not need to be intellectually gifted to be a successful real estate agent. It is far more important to have common sense and a knowledge of human nature.

• You need to enjoy solving "people problems." Excuse the old cliche, but you absolutely must be good at "working with people." You must enjoy the challenge of helping people solve very complex, often highly emotional, problems. Every transaction in which you will be involved will have difficulties. You will try to ensure that nothing serious goes wrong, but without fail you will have to deal with situations you could neither foresee nor forestall. Those who do well acknowledge the inevitability of obstacles and appreciate the fact that they will get paid in direct proportion to their ability to anticipate and resolve them. They are also able to detach themselves enough from the situation to maintain the objectivity that is vital to effective problem solving, and they seem to genuinely enjoy the challenge of handling situations that are particularly complex or sensitive.

• You need to be able to work with all kinds of people. The longer you are in real estate and the more successful you are, the more you will be able to control your clientele. Your reputation will tend to attract people who share your general business philosophy. But that will not be the case initially, and you will have to be prepared to work with all types of people. When I counsel prospective students for my real estate licensing classes, I typically ask what attracts them to the real estate profession. One of the most frequent responses is: "I like to work with people." What would probably be more accurate is: "I like to work with people I like." If you have never had the experience of dealing with the general public in a service or sales job, it will be difficult for you to fully appreciate how challenging it can be. Humility, an ability to keep things in perspective, and a healthy sense of humor are vital.

• You need to be a good listener. If you are worried that you are not all that good with words, relax. The perception that the effective real estate salesperson is one who overwhelms the prospect with a steady stream of clever conversation is seriously inaccurate. Experienced brokers agree that the most important communicative skill an agent can have is the ability to keep the mouth closed and listen -- I mean really listen. There is a big difference between effective and truly empathetic listening (putting yourself in the position of the other person) and simply remaining silent while someone else is talking. If you are interested in a successful career you must have this talent, or be willing to develop it.

• You need to be emotionally stable and mature. You have to be able to gain the trust and confidence of others while maintaining your own sense of balance and fairness. More often than not, the people you encounter will be honest and forthright, but there will be enough exceptions to try the patience of the most steadfast and optimistic person. The purchase or sale of a home is typically the largest single monetary transaction that a buyer or seller will ever be involved in, and in dealing with such large sums of money you may rustle up the dark and seamy side of an otherwise sweet and sunny disposition. You will have to be the emotional bellwether.

• You need to know your product. You will not be expected to be an expert electrician, plumber, or carpenter, nor to have an intimate knowledge of architecture or construction. But you do need to be familiar with the practical matters that are of primary concern to homeowners. If you are a homeowner yourself, that helps immensely. If not, I strongly recommend that you place "buy my own home" at the top of your "economic goals" list. Whether you educate yourself through self-study, formal courses, or a combination of the two, you will list and sell more homes -- and make more money -- if you know your product and can talk intelligently about it.

• You need to be convinced of your product's value. For most people home ownership remains the best investment they will ever make. It also fulfills a basic human need for shelter. It is hard to overstate the economic and social value that real estate ownership provides for the community and the nation. It should be easy to be enthusiastic about your product -- but if you are not, that will become very clear to those with whom you work. There are those who can sell anything, whether they believe in it or not, but most of us must first be honestly convinced ourselves.

• You need to know the territory. For practical considerations, each real estate company has what it considers a normal geographic area of operation. In some small communities, it may be the whole town and the surrounding countryside. In large metropolitan areas, it may be a particular section of the city. Wherever you work, you must know intimately the structure of the community. You must be knowledgeable not only about residential housing, but also of shopping centers, hospitals, and schools. It may be trite, but it's definitely true, that "you gotta know the territory."

• You need to be flexible. The profession of real estate has undergone tremendous change in the past few years and the future looks just as challenging. Part of the upheaval has been as the result of technological advances and part has been caused by fundamental challenges to traditional ways of doing business. We will cover the more important issues throughout the book, but at this point suffice it to say that you have to be willing to adapt to new technologies and to new methods of operation. It's not always easy.

• You have to persevere. I am familiar with several very successful agents in our local community (I'm talking about roughly $100,000 net income per year) who, if you asked me to name the character trait most responsible for their success, I would unhesitatingly respond: dogged perseverance. Yes, they work hard, they have integrity, and they relate well to people, but they would be the first to admit that they are not inherently gifted. I worked with them in the early 1980s when I was actively selling and the average price of homes in our community was in the $60,000 range. Here we are almost twenty years later and the average price of a home is around $140,000. They stuck it out when mortgage interest rates hit double digits and qualified buyers were as rare as a sunny day in Oregon, and they are now reaping the harvest. The word "quit" is simply not in their vocabulary.